The size of the camera is what makes the difference, but yes, if priced at under $600, it would be more "reasonably" priced. The only competition to this camera is really the Canon S110. Other cameras that are pocketable and have a 1/1.8 sensor or better are the competition and there is none.

To this day, there is no other camera out there that has such a big sensor in such a small body. The advantages of this are astounding. Even the JPG engine is fairly good for taking it to weddings or parties. I just used it at a wedding, and I am very impressed with the photos.One of my friends commented that what he was looking for was a camera that is really fast at taking pictures and processing them. The RX100 has a really fast chip in it, that is one huge advantage over many other cameras in the <$400 price range.

Because of the sensor size and the 20MP, this camera a better than 100mm lens when you start cropping. I can easily do a 200% plus magnification and have a very useful photo with a lot of details. Not every $400 camera can crop even 100%. The Sony HX20V, Canon SX260 (kinda can) and Nikon 9300 can't, but those have a 1/2.3 sensor. And those are all $350-$400 cameras. (when released)